By Williams H.B. No. 3561
75R11235 CLG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Town Center Improvement District of Montgomery
1-3 County, Texas; authorizing a tax and granting the authority to
1-4 issue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1, Chapter 289, Acts of the 73rd
1-7 Legislature, Regular Session, 1993, is amended by adding Subsection
1-8 (f) to read as follows:
1-9 (f) Except as otherwise provided by this Act, the district
1-10 is not subject to the jurisdiction or supervision of the commission
1-11 under Chapter 49, Water Code, or other law.
1-12 SECTION 2. Section 2, Chapter 289, Acts of the 73rd
1-13 Legislature, Regular Session, 1993, is amended to read as follows:
1-14 Sec. 2. DEFINITIONS. In this Act:
1-15 (1) "Board" means the board of directors of the
1-16 district.
1-17 (2) "Commission" means the Texas Natural Resource
1-18 Conservation Commission.
1-19 (3) "District" means the Town Center Improvement
1-20 District of Montgomery County, Texas.
1-21 (4) [(3)] "Improvement project" means any program or
1-22 project, whether individual, intermittent, or continuing and
1-23 whether located or conducted within or without the district, for
1-24 the planning, design, construction, acquisition, lease, rental,
2-1 installment purchase, improvement, provision of furnishings,
2-2 equipment, rehabilitation, repair, reconstruction, relocation, use,
2-3 management, operation, or maintenance of any works, improvements,
2-4 or facilities or the provision, support, enhancement, improvement,
2-5 extension, or expansion of services, whether provided to, for, by,
2-6 or on behalf of the district, necessary for the accomplishment of
2-7 the public purposes of the district, including:
2-8 (A) landscaping; lighting, banners, and signs;
2-9 streets or sidewalks; hike and bike paths and trails, pedestrian
2-10 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
2-11 transit corridor beautification and improvements; drainage or storm
2-12 water detention improvements; solid waste, water, sewer, or power
2-13 facilities and services, including but not limited to electrical,
2-14 gas, steam, and chilled water facilities; parks, lakes, gardens,
2-15 recreational facilities, open space, scenic areas, and related
2-16 exhibits and preserves; fountains, plazas, and pedestrian malls;
2-17 public art and sculpture and related exhibits and facilities;
2-18 educational and cultural exhibits and facilities; conferences,
2-19 conventions, or exhibitions; manufacturer, consumer, or trade
2-20 shows; civic, community, or institutional events; exhibits,
2-21 displays, attractions, and facilities for special events, holidays,
2-22 and seasonal or cultural celebrations; off-street parking
2-23 facilities, bus terminals, heliports, mass-transit, and
2-24 roadway-borne or water-borne transportation and people-mover
2-25 systems; and any other public improvements, facilities, or services
2-26 similar to the foregoing;
2-27 (B) the removal, razing, demolition, or clearing
3-1 of land or improvements in connection with any improvement project;
3-2 (C) the acquisition of real or personal property
3-3 or any interest therein in connection with an authorized
3-4 improvement project provided that the district shall not have the
3-5 power of eminent domain; and
3-6 (D) any special or supplemental services for the
3-7 improvement and promotion of the district or adjacent areas or for
3-8 the protection of public health and safety within or adjacent to
3-9 the district, including but not limited to advertising, promotion,
3-10 tourism, health and sanitation, public safety, security, fire
3-11 protection and emergency medical services, business recruitment,
3-12 development, elimination of traffic congestion, and recreational,
3-13 educational, and cultural improvements, enhancements, and services.
3-14 SECTION 3. Section 6(a), Chapter 289, Acts of the 73rd
3-15 Legislature, Regular Session, 1993, is amended to read as follows:
3-16 (a) The district has all of the rights, powers, privileges,
3-17 authority, and functions conferred on municipal management
3-18 districts by Subchapter E, Chapter 375, Local Government Code, and
3-19 by the general laws of the state on conservation and reclamation
3-20 districts created under Article XVI, Section 59, of the Texas
3-21 Constitution, and on road districts and road utility districts
3-22 created pursuant to Article III, Section 52, of the Texas
3-23 Constitution, including those conferred by Chapters 49 and
3-24 [Chapter] 54, Water Code, and Chapter 441, Transportation Code [13,
3-25 Acts of the 68th Legislature, 2nd Called Session, 1984 (Article
3-26 6674r-1, Vernon's Texas Civil Statutes)], together with the
3-27 additional rights, powers, privileges, authority, and functions
4-1 contained in this Act.
4-2 SECTION 4. Section 7, Chapter 289, Acts of the 73rd
4-3 Legislature, Regular Session, 1993, is amended to read as follows:
4-4 Sec. 7. Additional Specific Powers and Duties. In addition
4-5 to the general powers set forth in Section 6 of this Act, the board
4-6 may, subject to the provisions and limitations hereinafter set
4-7 forth:
4-8 (1) levy, assess, and apply the proceeds from a
4-9 limited sales and use tax for the district's purposes, provided
4-10 that, during each interval of three calendar years following the
4-11 commencement of collection of such tax, the board shall, consistent
4-12 with the district's authorized powers and purposes and in its sound
4-13 discretion, endeavor to apply an annual average of not less than 10
4-14 percent of the net proceeds of such tax collections, after
4-15 deduction of the general and administrative costs and expenses of
4-16 the district and the costs and expenses of levying, assessing, and
4-17 collecting such taxes, toward mitigation of the impact of
4-18 development within the district on adjacent areas, including
4-19 without limitation effects on public utilities and services, public
4-20 transportation and traffic movement, and scenic and aesthetic
4-21 beauty;
4-22 (2) borrow money for the corporate purposes of the
4-23 district;
4-24 (3) add or exclude territory in the manner provided by
4-25 Subchapter J [H], Chapter 49 [54], Water Code, except that Section
4-26 42.042, Local Government Code, does not apply to the district;
4-27 (4) contract with any person or entity for the
5-1 accomplishment of any of the district's purposes including without
5-2 limitation contracting [contracts] for:
5-3 (A) the payment, repayment, or reimbursement,
5-4 out of tax proceeds or any other specified source of funds, of any
5-5 costs and reasonable carrying costs incurred by that person for or
5-6 on behalf of the district, including all or part of the costs of
5-7 any improvement project; or
5-8 (B) the use, occupancy, lease, rental,
5-9 operation, maintenance, or management of all or part of a proposed
5-10 or existing improvement project;
5-11 (5) make application for and contract with any person
5-12 or entity to receive, administer, and perform the district's duties
5-13 and obligations under any federal, state, local, or private gift,
5-14 grant, loan, conveyance, transfer, bequest, donation, or other
5-15 financial assistance arrangement relating to the investigation,
5-16 planning, analysis, study, design, acquisition, construction,
5-17 improvement, completion, implementation, or operation by the
5-18 district or others of a proposed or existing improvement project;
5-19 (6) make, adopt, revise, repeal, amend, promulgate,
5-20 and enforce by ordinary civil remedies reasonable rules and
5-21 regulations for the administration and operation of the district,
5-22 the use, enjoyment, availability, protection, security, and
5-23 maintenance of the district's properties and facilities, and
5-24 providing for public safety and security within the district;
5-25 (7) establish, revise, repeal, enforce, collect, and
5-26 apply the proceeds from user fees, concessions, admissions,
5-27 rentals, or other similar fees or charges for the enjoyment, sale,
6-1 rental, or other use of the district's facilities, services,
6-2 properties, or improvement projects; however, because the district
6-3 is created in an area that is devoted primarily to commercial and
6-4 business activity, the district may not impose an impact fee or
6-5 assessment on a single family residential property or a residential
6-6 duplex, triplex, quadruplex, or condominium;
6-7 (8) provide or secure the payment or repayment of the
6-8 costs and expenses of the establishment, administration, and
6-9 operation of the district and the district's costs or share of the
6-10 costs of any improvement project, or district contractual
6-11 obligation or indebtedness, by or through a lease, installment
6-12 purchase contract, or other agreement with any person or the levy
6-13 and assessment of taxes, user fees, concessions, rentals, or other
6-14 revenues or resources of the district; [and]
6-15 (9) undertake separately or jointly with other persons
6-16 or entities and pay all or part of the cost of improvement
6-17 projects, including improvement projects for improving, enhancing,
6-18 and supporting public safety and security, fire protection and
6-19 emergency medical services, and law enforcement within and adjacent
6-20 to the district and improvement projects that confer a general
6-21 benefit on the entire district and the areas adjacent thereto or a
6-22 special benefit on a definable part of the district, which may be
6-23 the entire district or any part thereof; however, the district
6-24 shall not be authorized to employ peace officers; and
6-25 (10) impose, collect, and apply the proceeds from a
6-26 hotel occupancy tax as provided by Sections 11A and 11B of this
6-27 Act.
7-1 SECTION 5. Sections 8(b), (c), (e), and (k), Chapter 289,
7-2 Acts of the 73rd Legislature, Regular Session, 1993, are amended to
7-3 read as follows:
7-4 (b)(1) Except as provided by Subdivisions (2) and (3) of
7-5 this subsection, to be qualified to serve as a director, a person
7-6 must be at least 18 years old and be:
7-7 (A) a resident of the district;
7-8 (B) an individual owner of real property in the
7-9 district;
7-10 (C) an individual owner [of stock], whether
7-11 beneficial or otherwise, of at least 10 percent of the outstanding
7-12 stock of a corporate owner of real property in the district or of a
7-13 corporate lessee of real property in the district with an original
7-14 lease term of five years or more, excluding options;
7-15 (D) an individual owner of at least 10 percent
7-16 of the [a] beneficial interest in a trust that:
7-17 (i) owns real property in the district; or
7-18 (ii) leases real property in the district
7-19 under an original lease term of five years or more, excluding
7-20 options;
7-21 (E) an individual lessee of real property in the
7-22 district under an original lease term of five years or more,
7-23 excluding options;
7-24 (F) an individual owner of at least 10 percent
7-25 of the outstanding interest in a general or limited partnership
7-26 that:
7-27 (i) owns real property in the district; or
8-1 (ii) leases real property in the district
8-2 under an original lease term of five years or more, excluding
8-3 options; or
8-4 (G) [(E)] an individual agent, employee,
8-5 officer, or director of any individual, corporation, trust, or
8-6 partnership that owns or leases [owner of] real property described
8-7 by Paragraph (B), (C), [or] (D), (E), or (F) of this subdivision
8-8 who is designated by such owner or lessee to serve in that
8-9 capacity.
8-10 (2) To be eligible for appointment under [Paragraph
8-11 (F) or (G) of Subdivision (1) of] Subsection (c)(1)(F) or (G) of
8-12 this section, a person must be a resident of the city making the
8-13 appointment [and may not be a person described by Paragraph (B),
8-14 (C), (D), or (E) of Subdivision (1) of this subsection].
8-15 (3) To be eligible for appointment under [Paragraph
8-16 (H) of Subdivision (1) of] Subsection (c)(1)(H) of this section, a
8-17 person must be a member of The [the] Woodlands Community
8-18 Association, Inc [and may not be a person described by Paragraph
8-19 (B), (C), (D), or (E) of Subdivision (1) of this subsection.]
8-20 [(4) A person or entity that owns an interest in a
8-21 general or limited partnership owning real property in the district
8-22 or who has a lease of real property in the district with a
8-23 remaining term of 10 years or more, excluding options, is
8-24 considered to be an owner of real property for purposes of this
8-25 subsection].
8-26 (c)(1) On the effective date of this Act, the following
8-27 persons shall constitute the initial board and shall serve as
9-1 provided in this Act:
9-2 (A) Vicki D. Armstrong;
9-3 (B) Roger L. Galatas;
9-4 (C) R. A. Kutsche;
9-5 (D) Michael H. Richmond;
9-6 (E) Bruce M. Withers, Jr.;
9-7 (F) one individual appointed by the city council
9-8 of the City of Oak Ridge North;
9-9 (G) one individual appointed by the city council
9-10 of the City of Shenandoah; and
9-11 (H) one individual appointed by the board of
9-12 directors of The [the] Woodlands Community Association, Inc.
9-13 (2) If one or more of the initial directors listed in
9-14 this subsection fails to qualify for office within 90 days after
9-15 the effective date of this Act, the remaining directors shall
9-16 appoint qualified persons to fill the vacancies for the unexpired
9-17 terms.
9-18 (e) A vacancy in the office of director shall be filled by
9-19 appointment of a qualified individual by a majority vote of the
9-20 remaining directors, except that if the number of directors for any
9-21 reason is less than five, on petition of a resident of or owner of
9-22 real property in the district, the commission shall appoint the
9-23 required number of qualified individuals to fill the vacancies.
9-24 The board may remove a director for misconduct or failure to carry
9-25 out the director's [his] duties by unanimous vote of all of the
9-26 remaining directors.
9-27 (k) A person who qualifies to serve on the board [under
10-1 Subsection (b) of this section] shall be qualified to serve as a
10-2 director and participate in all votes pertaining to the business of
10-3 the district regardless of any common law doctrine or any statutory
10-4 conflict-of-interest, incompatibility, or similar provision
10-5 [provisions] to the contrary.
10-6 SECTION 6. Section 11, Chapter 289, Acts of the 73rd
10-7 Legislature, Regular Session, 1993, is amended by amending
10-8 Subsection (h) and adding Subsection (j) to read as follows:
10-9 (h) In the event that all or part of the territory of the
10-10 district is annexed by or incorporated into a municipality that
10-11 [which] has adopted and is imposing a sales and use tax or that
10-12 later adopts and imposes a sales and use tax, the sales and use tax
10-13 imposed by the district in such annexed or incorporated territory
10-14 shall be reduced, if required to comply with the provisions hereof,
10-15 in even multiples of one-half percent, and without the necessity
10-16 for an election, such that the combined rate of all sales and use
10-17 taxes imposed by the county, the [annexing] municipality, and all
10-18 other political subdivisions within the annexed or incorporated
10-19 territory of the district will not exceed two percent, provided
10-20 that:
10-21 (1) the municipality shall reimburse the district for
10-22 the amount of the tax reduced in the manner provided by Section
10-23 312.637(h), Tax Code, until the bonds of the district payable or
10-24 secured, wholly or partly, from the proceeds of the sales and use
10-25 tax are no longer outstanding;
10-26 (2) a sales and use tax previously adopted by the
10-27 district for such annexed or incorporated territory shall not be
11-1 reduced to less than one-half percent; and
11-2 (3) [provided further that] no reduction of the
11-3 district's sales and use tax in the portions of the district not so
11-4 annexed or incorporated shall be required.
11-5 (j) The district is entitled to examine and receive
11-6 information related to the levy, assessment, and collection of
11-7 sales and use taxes to the same extent as if the district were a
11-8 municipality.
11-9 SECTION 7. Chapter 289, Acts of the 73rd Legislature,
11-10 Regular Session, 1993, is amended by adding Sections 11A and 11B
11-11 to read as follows:
11-12 Sec. 11A. HOTEL OCCUPANCY TAX. (a) In this section,
11-13 "hotel" has the meaning assigned by Section 156.001, Tax Code.
11-14 (b) The board by order may impose a tax on a person who,
11-15 under a lease, concession, permit, right of access, license,
11-16 contract, or agreement, pays for the use or possession or for the
11-17 right to use or possession of a room that is in a hotel located in
11-18 the boundaries of the district, costs $2 or more each day, and is
11-19 ordinarily used for sleeping. The amount of the tax may not exceed
11-20 seven percent of the price paid for a room in a hotel.
11-21 (c) A district by order may repeal, increase, or decrease
11-22 the rate of a tax imposed under this section.
11-23 (d) Except as inconsistent with this section and Section 11B
11-24 of this Act and subject to the limitations prescribed by Sections
11-25 352.002(b) and (c), Tax Code, Subchapter A, Chapter 352, Tax Code,
11-26 governs a hotel occupancy tax authorized under this section,
11-27 including the collection of the tax.
12-1 (e) The district is entitled to examine and receive
12-2 information related to the levy, assessment, and collection of
12-3 hotel occupancy taxes to the same extent as if the district were a
12-4 municipality.
12-5 (f) For purposes of this section, a reference in Subchapter
12-6 A, Chapter 352, Tax Code, to a county or the county's officers or
12-7 governing body is a reference to the district or the district's
12-8 officers or governing body, as appropriate.
12-9 Sec. 11B. USE OF HOTEL OCCUPANCY TAX PROCEEDS. (a) The
12-10 district shall apply the proceeds from a hotel occupancy tax
12-11 imposed under Section 11A of this Act for any of the district's
12-12 purposes and for the purposes described by Section 352.1015, Tax
12-13 Code, to the extent considered appropriate by the board.
12-14 (b) During each interval of three calendar years following
12-15 the date on which a hotel occupancy tax imposed under Section 11A
12-16 of this Act is initially collected, the board may not apply an
12-17 annual average of more than 10 percent of the amount of tax
12-18 collected under that section, excluding any interest earnings or
12-19 investment profits and after a deduction for the costs of imposing
12-20 and collecting the taxes, for the administrative expenses of the
12-21 district or a district purpose other than:
12-22 (1) the costs of advertising and promoting tourism;
12-23 and
12-24 (2) the costs of business development and commerce,
12-25 including the costs of planning, designing, constructing,
12-26 acquiring, leasing, financing, owning, operating, maintaining,
12-27 managing, improving, repairing, rehabilitating, or reconstructing
13-1 improvement projects for conferences, conventions, and exhibitions,
13-2 manufacturer, consumer, or trade shows, and civic, community, or
13-3 institutional events.
13-4 (c) For purposes of this section, a reference in Subchapter
13-5 A, Chapter 352, Tax Code, to a county or the county officers or
13-6 governing body means the district or the district's officers or
13-7 governing body, as appropriate.
13-8 SECTION 8. Chapter 289, Acts of the 73rd Legislature,
13-9 Regular Session, 1993, is amended by adding Section 12A to read as
13-10 follows:
13-11 Sec. 12A. BONDS. (a) The board may issue bonds in the
13-12 manner provided by Subchapter J, Chapter 375, Local Government
13-13 Code. Sections 375.207 and 375.208, Local Government Code, do not
13-14 apply to bonds issued under this section.
13-15 (b) If the district issues bonds for the primary purpose of
13-16 providing water, sewage, or drainage facilities, the district must
13-17 obtain the commission's approval in the manner provided by Chapter
13-18 49, Water Code.
13-19 (c) In addition to the sources of money described by
13-20 Subchapter J, Chapter 375, Local Government Code, the bonds of the
13-21 district may be secured and made payable, wholly or partly, by a
13-22 pledge of any part of the net proceeds the district receives from:
13-23 (1) a specified portion, but not more than one-half
13-24 percent, of the sales and use tax authorized by Section 11 of this
13-25 Act;
13-26 (2) the hotel occupancy tax authorized by Section 11A
13-27 of this Act; and
14-1 (3) repayments the district receives from a
14-2 municipality because of a required reduction of the district's
14-3 sales and use tax.
14-4 SECTION 9. Section 14, Chapter 289, Acts of the 73rd
14-5 Legislature, Regular Session, 1993, is amended by adding Subsection
14-6 (d) to read as follows:
14-7 (d) The district may not be dissolved by a municipality in
14-8 which the district is located.
14-9 SECTION 10. Section 12, Chapter 289, Acts of the 73rd
14-10 Legislature, Regular Session, 1993, is repealed.
14-11 SECTION 11. (a) The proper and legal notice of the
14-12 intention to introduce this Act, setting forth the general
14-13 substance of this Act, has been published as provided by law, and
14-14 the notice and a copy of this Act have been furnished to all
14-15 persons, agencies, officials, or entities to which they are
14-16 required to be furnished by the constitution and other laws of this
14-17 state, including the governor, who has submitted the notice and Act
14-18 to the Texas Natural Resource Conservation Commission.
14-19 (b) The Texas Natural Resource Conservation Commission has
14-20 filed its recommendations relating to this Act with the governor,
14-21 lieutenant governor, and speaker of the house of representatives
14-22 within the required time.
14-23 (c) All requirements of the constitution and laws of this
14-24 state and the rules and procedures of the legislature with respect
14-25 to the notice, introduction, and passage of this Act are fulfilled
14-26 and accomplished.
14-27 SECTION 12. The importance of this legislation and the
15-1 crowded condition of the calendars in both houses create an
15-2 emergency and an imperative public necessity that the
15-3 constitutional rule requiring bills to be read on three several
15-4 days in each house be suspended, and this rule is hereby suspended,
15-5 and that this Act take effect and be in force from and after its
15-6 passage, and it is so enacted.